Mylan's Revenue Misses on Currency Effects

Mylan NV on Tuesday said revenue rose a less-than-expected 9%, as foreign currency and acquisition costs weighed on results.

Shares, up 29% this year through Tuesday's close, fell less than 1% in after-market trading. The company affirmed its full-year outlook.

The maker of generic drugs is currently in a three-way takeover battle in the pharmaceutical industry. It recently increased its offer to acquire rival Perrigo Co. to $35.6 billion, while at the same time being the target of a proposed $40 billion takeover from Teva Pharmaceutical Industries Ltd. Last week, Mylan sued Kirkland & Ellis LLP over the law firm's role in advising Teva.

Chief Executive Heather Bresch said Tuesday that the company remains steadfast in its bid for Perrigo.

Earlier this year, Mylan bought part of Abbott Laboratories' generic-drugs business for $5.3 billion in a deal structured as a tax inversion. Mylan also had agreed to buy certain women's health-care businesses from India's Famy Care Ltd. for $750 million in cash, in a move seen positioning Mylan as a leading provider of contraceptives in emerging markets.

In the latest quarter, generics segment third-party sales grew 9% to $1.64 billion, though it would have grown 15% on a constant-currency basis. The increase was due mostly to new products and acquisitions, and higher volumes on existing products in parts of Europe. The specialty segment reported sales of $211 million, up 8%, mostly because of higher net sales of its EpiPen.

Overall, Mylan reported a profit of $56.6 million, or 13 cents a share, down from $116 million, or 29 cents a share, a year earlier. The drop was mostly due to acquisition costs.

Excluding these costs and other items, per-share earnings rose to 70 cents from 66 cents in the prior-year period.

Revenue increased to $1.87 billion from $1.72 billion. Foreign currency headwinds hurt revenue by $93 million.

Analysts had forecast earnings of 69 cents on revenue of $2.06 billion.

Write to Angela Chen at [e-mail]

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